As I said earlier in the week, the USD looks set to make further gains against the big European currencies and these trades are starting to develop nicely.
Cable was the first mover and I’d expect any rallies now back towards 1.6775 to run into plenty of grateful sellers. I don’t expect any major collapse, with the GBP likely to remain the strong against the EUR for example, but we could see levels around 1.6500 in coming weeks.
EUR/USD looks to have turned a corner and the regular daily closes below the 200-dma suggest that there is more downside ahead.
The big surprise could come from USD/CHF. Technically it looks like a base is trying to form and the sell-off in metals suggests to me that we could see some significant CHF weakness develop. I will post a bit more on this trade-building opportunity shortly.